WTO Publishes Customs Valuation Handbook
The World Trade Organization has published a handbook on the WTO Customs Valuation Agreement.
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(The rules for valuing imports for purposes of assessing customs duties are defined in the WTO Customs Valuation Agreement, a system that is designed to promote fairness, neutrality and uniformity in customs duty assessment and which is used by more than 150 WTO Member countries worldwide.)
Useful for Goods Subject to Ad Valorem Import Duties
The handbook states that customs valuation particularly becomes an issue where import duties are calculated on an “ad valorem” basis. An ad valorem duty rate is one that is expressed as a percentage of the value of the imported goods. Duties may also be assessed on “specific c” basis, where a fixed amount is charged on the quantity of goods imported. A duty on a particular import might be a combination of ad valorem and specific rates (a compound rate). Nevertheless, ad valorem rates are the most prominent in international trade, as they are used by WTO Members against all but a small percentage of goods in their tariff schedules.
Handbook Covers Valuation Methods, Required Additions to Price, Etc.
The handbook aims to provide a deeper understanding of the agreement’s functions and aims. It covers the value method, alternative valuation methods, implementation and operation, and administration and dispute settlement. Within these topics, the handbook covers definitions, when certain valuation should and should not be used, etc.
The Handbook’s Table of Contents and Introduction are available here.